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Jack Ltd is looking at a project that will require $80,000 in fixed assets. The project is expected to produce cash sales of $110,000 with
Jack Ltd is looking at a project that will require $80,000 in fixed assets. The project is expected to produce cash sales of $110,000 with associated cash costs of $70,000. The project has a 5-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 30 percent. What is the annual operating cash flow for this project?
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